Question

Define outsourcing.

Answer 1

Outsourcing is a business practice used by companies to reduce costs or improve efficiency by shifting tasks, operations, jobs, or processes to an external contracted third party for a significant period of time.

Answer 2

Outsourcing is obtaining goods and services from outside sources that were previously produced in-house. Firms outsource to reduce costs, access specialized skills or technology, scale operations quickly, and concentrate on core competencies, often across borders to benefit from lower wages or expertise.